All categories

2 years ago

Dividends paid to common stockholders ______ be deducted from the payer's taxable income for tax purposes.

Business

1 answer:

Grace [21]2 years ago

3 0

Dividends paid to common stockholders cannot be deducted from the payer's taxable income for tax purposes.

<h3>What is Dividend Payments?</h3>

Dividends are paid only on outstanding shares of common stock. Since the payments are the distribution of a company's profits to its shareholders, dividend payments decrease both the cash and the shareholders' equity balance shown on the issuing corporation's balance sheet.

Since they are paid on each share, the amount of cash distributed to each shareholder is based on the amount of shares they own.

<h3>Are dividends paid to common stockholders?</h3>

Dividends are paid only on outstanding shares of common stock.

A common stock dividend is the dividend paid to common stock owners from the profits of the company. Like other dividends, the payout is in the form of either cash or stock. The law may regulate the size of the common stock dividend particularly when the payout is a cash distribution tantamount to a liquidation.

Learn more about Dividends on:

brainly.com/question/25845157

#SPJ4

You might be interested in

Attorneys' fees, entrance fees, train fares, and organization dues are all:_______

Tom [10]

Answer:

d. synonyms for price.

Explanation:

All the stated items (attorney fees, entrance fees, train fares, and organisation dues) are all prices.

Price is the amount that is paid for a particular good or service performed.

When fixing a price usually there is an offer and acceptance of the amount to be paid for goods or services.

Also payment can be made upfront like the case of train fare. While in other instances payment may be deferred as is seen in attorney fees and organisation dues.

Price can also change when one party grants concession to the other, for example loan rebate where the debtor is given price relief.

3 0

3 years ago

On December 31, 2018, Adelphi Corporation has outstanding 500 shares of $100 par value, 4% cumulative and nonparticipating prefe

alexandr402 [8]

Answer:

$5.50 dividend per share to common stock

Explanation:

In case a company has cumulative preference shares then the company has to pay preference dividend in arrears

Here, preference dividend was not paid in the year 2017

Preference dividend for 2017 = 500 $\times$ $100 $\times$ 4%

= $2,000

Since the dividend is paid in between the year 2018, dividend is paid for the year 2017 and not for 2018 thus preference dividend is for a year, only for 2017

Therefore, dividend to common equity = $35,000 - $2,000 = $33,000

Dividend per share = $33,000/6,000 = $5.50 per share

6 0

4 years ago

Brand loyalty can be created by: a. minimal advertising. b. not using patents to protect products. c. cutting the costs for rese

vesna_86 [32]

Answer:

Option d is the correct option.

Explanation:

All other options creates less awareness and uniqueness of the products, whereas emphasising on better quality of products creates brand recognition and this higher brand recognition creates greater brand loyalty.

For creation of brand loyalty, we have to offer our customers something extra that our competitors are unable to deliver.

7 0

3 years ago

Read 2 more answers

A company that is not a commercial bank issues a 10-year bond. it is exempt from sec registration, regardless how sold. the issu

Ne4ueva [31]

The issuer must be of the organization where <u>Securities issued by nonprofit organizations are exempt from </u><u>federal registration</u><u>, regardless of how they are sold.</u>

<h3>What is federal registration?</h3>

The federal registration, the U.S. federal government's official journal, publishes notices to the public, proposed regulations, and guidelines for government agencies.
Except for federal holidays, it is published every workday. The Code of federal registration (CFR), which is revised yearly, codifies the final rules issued by a federal agency and published in the Federal Register after being rearranged by theme or subject matter.
The Government Publishing Office prints the federal registration after it has been assembled by the Office of the federal registration (a division of the National Archives and Records Administration). The federal registration is free from copyright restrictions because it is a government-produced work and belongs to everyone.

To learn more about federal registration with the given link

brainly.com/question/15135734

#SPJ4

3 0

2 years ago

The goal of an mnc is to maximize the ________.

SashulF [63]

Answer: Option C

Explanation: In simple words, the goal of an MNC is to maximize the wealth of its shareholders which can be achieved only when the value of that company increases overall.

The increase in value of a subsidiary will only increase the benefit of the stakeholders of that subsidiary while earnings is considered as a temporary benefit in corporate world.

Hence from the above we can conclude that the correct option is C.

3 0

3 years ago